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CS Executive · Setting Up of Business, Industrial and Labour Laws · Financial Services Organization

Under the Banking Regulation Act, 1949, the powers of the Reserve Bank 'shall not extend to' an IFSC. Which kind of IFSC does Section 51A cover?

Section 51A covers an International Financial Services Centre set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005. Ordinary SEZs, State-notified hubs or foreign bank branches elsewhere in India are not covered by this carve-out.

  1. AAny financial hub notified by a State Government
  2. BAn IFSC set up under sub-section (1) of section 18 of the Special Economic Zones Act, 2005Correct
  3. CAny foreign bank branch in India
  4. DAny Special Economic Zone, whether or not it has an IFSC

Explanation

Section 51A(a) refers specifically to an IFSC set up under section 18(1) of the Special Economic Zones Act, 2005. A general SEZ without such an IFSC is not covered, which is why the last option fails.

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